Chukchansi Gold Resort & Casino Embarks Upon Financial Restructuring

Operations at Chukchansi Gold Resort & Casino to Continue Uninterrupted During Transition

COARSEGOLD, Calif., Nov. 16, 2011 /PRNewswire/ -- November 15 -- The Chukchansi Economic Development Authority ("Authority"), operator of the premier Central California destination casino resort facility Chukchansi Gold Resort & Casino ("Chukchansi Gold"), announced today that it did not make an interest payment scheduled for November 15 on its 8% Senior Notes due 2013 and its Floating Rate Senior Notes due 2012.  

In connection therewith, the Chukchansi Economic Development Authority issued the following statement:

"Chukchansi Gold is a premium resort destination that continues to generate positive cash flow.  However, we have not been immune from the global economic downturn and significant central California economic forces (including approximately 15% unemployment and home foreclosures that are two to three times greater than the national average), which have impacted our operations, just as they have affected many operating in the gaming industry as well as many other businesses in the region. We are actively seeking to negotiate a timely restructuring of our debt, which, if successful, would provide us with increased financial flexibility and enable us to emerge a stronger business over the long term.  In addition, a sensible restructuring would provide us with the resources necessary to continue to re-invest in our property, take advantage of strategic opportunities as they arise, and maintain our role as a responsible citizen of our community.

"During this process, we wish to assure our guests, employees and vendors that operations at Chukchansi Gold will not be affected by the financial restructuring. Chukchansi Gold will continue to operate uninterrupted by the restructuring process, and we will provide our guests with the same level of service, value and entertainment choice they have come to expect and enjoy.  From offering a premium gaming and resort experience to honoring rewards earned by our Players Club members, it is business as usual at Chukchansi Gold.

"Additionally, our employees should not expect to see any difference in their jobs, and relations with our vendors will continue unaffected. We greatly value each member of our team and each one of our vendors.  We are committed to continuing to work with them to deliver a one-of-a-kind experience to our guests and players."

Chukchansi Economic Development Authority

The Authority is a wholly-owned unincorporated enterprise of the Picayune Rancheria of the Chukchansi Indians, a federally recognized Indian tribe (the "Tribe"). The Tribe has approximately 1,100 enrolled members and operates the Chukchansi Gold on an approximately 48.5-acre property near Coarsegold, California.

Information About this Press Release

This press release is for informational purposes only and is not an offer to buy or to sell, or the solicitation of an offer to buy or to sell, any security.  For questions please contact Matt Olin, General Manager at 559-692-5200.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "will," "may," "should," "would," "could," "projects," "targets," "views," negative or other variations of these words, and similar expressions and other words of similar import and similar references to future periods. Forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult or impossible to predict and which may cause actual results, performance and achievements, or industry results, to be materially different from any future results, outcomes, performance or achievements expressed or implied by such forward-looking statements.  Such statements are neither statements of historical fact nor guarantees or assurances of future performance. Actual results may differ materially from those expressed or implied by the forward-looking statements, and forward-looking statements should not be regarded as a representation by any person that such forward-looking statements will be achieved.  For all of the foregoing reasons, we caution you against relying on any forward-looking statement contained in this press release.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market, and regulatory conditions and any, some or all the following, in addition to other risks: (i) our substantial indebtedness, significant financial commitments, and the possible exercise of remedies by our creditors; (ii) our ability to service or refinance our indebtedness and to make planned expenditures, as well as our ability to negotiate and consummate a restructuring with our creditors on satisfactory terms, or at all; (iii) the impact of economic, competitive, demographic, business, regulatory, market, financial, credit and other conditions on the local and regional market in which the Chukchansi Gold operates and the locations in which our customers reside; (iv) restrictions and limitations imposed by the documents governing our indebtedness, including the indenture governing our 8% Senior Notes due 2013 and Floating Rate Senior Notes due 2012; (v) intense competition from our peers in the market in which we operate and with respect to leisure and travel locations generally; (vi) the dependence of the Chukchansi Gold on a single gaming market; (vii) unusual maintenance, repair or capital expenditure requirements; (viii) the susceptibility of leisure and business travel to global geopolitical events, including terrorist attacks, acts of war or hostility, or other similar events; (ix) our extension of credit to certain of our customers and the fact that we may not be able to collect gaming receivables from our credit players; (x) the fact that we are subject to extensive regulation, and the related costs of compliance or failure to comply with such regulations; (xi) the outcome of pending and potential future litigation claims against us; (xii) our labor relations and the fact that a significant portion of our labor force is covered by a collective bargaining agreement; (xiii) dependence on key personnel; and (xiv) a history of defaults and disputes under certain agreements.

Any forward-looking statement made by us herein speaks only as of the date on which it is made. Other factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict or identify all such factors. Consequently, this disclosure does not constitute a complete discussion of all potential risks or uncertainties. We undertake no obligation to update any forward-looking statement (or any other statement contained herein), except as may be required by law. You are advised to consult all prior and later disclosures we make on related subjects.

SOURCE Chukchansi Economic Development Authority